It's not because it didn't happen yet that economists (or economic theory) are wrong. Chinese economy is growing so fast that they can essentially bail out bank

It's not because it didn't happen yet that economists (or economic theory) are wrong. Chinese economy is growing so fast that they can essentially bail out banks (silently) whenever they want and have little impact on the budget. It should be interesting to see how it develops when the economic eventually slows down and China is no longer the cheap manufacturing park of the world. 25y is nothing. Japan went like that for 40y, from the end of WW2 to laye 80s. Until it stopped and never recovered since. Fortunately they stopped at a high income level. A more interesting history is that of Argentina. It was an export powerhouse that went from being a poor Spanish colony in early 1800s to having a per capita income as high as Germany or France in 1920s. After the crash all went downhill and income levels are back to mid levels.